wellington capital limited news, page-46

Due to ongoing requests I am just updating some more important links to our fund the former 'MFS/OCV Premium Income Fund, my apologies if this information is repetitious but it appears there are individuals wanting to record my connections and research:http://media.wotnews.com.au/asxann/00840408.pdf
extracted from the aboe link:
The Board and staff of the Company wish to take this opportunity to thank the outgoing Chairman
and wish him well in his future endeavours.
Following this restructure of the Board, Craig Chapman has resigned as an executive director and
been appointed the Company’s CEO. Chris Scott remains an executive director with
David Burke and Barry Cronin remaining as non executive directors.
Octaviar Limited today announced that a wholly owned subsidiary had entered into a call option
deed granting Wellington Capital Limited ACN 114 248 458 (Wellington Capital) an option to
purchase its shareholding in Octaviar Investment Management Limited ACN 101 634 146
(Octaviar IM), the responsible entity of:
• Octaviar Premium Income Fund ARSN 090 687 577
• Octaviar Wholesale Premium Income Fund ARSN 107 973 071
• Octaviar Cash Enhanced Fund ARSN 118 285 760
• Octaviar Maximum Yield Fund ARSN 109 106 658
• Octaviar Dynamic Growth Equity Fund ARSN 121 883 020.
On 2 May 2008, the existing directors of Octaviar IM resigned and a new board was appointed,
comprising of:
• Jenny Hutson;
• Robert Pitt; and
• Craig Wallace.
Wellington Capital is an unlisted public company with more than $600 million in assets under
management in wholesale and retail funds.
Following execution of the call option deed, the Company will pay Wellington Capital a
management fee in relation to Wellington Capital’s management of OIM and its underlying funds.
The call option is exercisable by Wellington Capital at any time up to and including 31 August
2008. In the event the call option is exercised, the purchase price payable by Wellington Capital
for the acquisition of Octaviar IM will be equal to:
a) a multiple of four times the actual profit of Octaviar IM for the 12 months period following the
acquisition; plus
b) the value of the net tangible assets of Octaviar IM at the end of that 12 month period.
“The Board has recognised that it is not in the best interests of creditors, shareholders and other
Company stakeholders for Octaviar IM to remain a wholly owned subsidiary of the Company at
this time,” said Paul Manka.
On 26 February 2008, Octaviar IM provided the Company with an option notice to notify the
Company of the requirement to draw down on the Support Facility between the Company and
Octaviar IM. The Support Facility has a callable value of $50 million.
The Support Facility is a contractual arrangement between Octaviar IM and the Company
pursuant to which the Company has agreed to provide callable funds to Octaviar IM in order to
allow Octaviar IM to meet any shortfall in target distributions of the Octaviar Premium Income
Fund and meet any expenses.
The Company and Octaviar IM are continuing to discuss payments under the Support Facility as
part of the Company’s wider negotiations with its large unsecured creditors. The Company’s
Interim Financial Report released on 28 April 2008 made reference to this $50 million obligation.
As noted in note 13(h) of the Company’s Interim Financial Report, the Octaviar Premium Income
Fund had breached a financial covenant in relation to its banking facility. The Fund’s secured
creditor has provided a further extension to 31 July 2008 for repayment.
‘The current staff of Octaviar IM will work with the funds management team at Wellington Capital
to ensure an orderly transition and to ensure that Octaviar IM continues to be committed to
working in the best interests of Unitholders during this difficult time to ensure that, given current
market conditions and the position of the funds, the best possible outcome is achieved for
Unitholders’, said Jenny Hutson, Managing Director of Wellington Capital.
For further information please contact:
Chris Scott
Executive Director
Telephone: (07) 5557 7700